The plight of college students in deep credit card debt is reported in the media almost daily, but for many young people, credit card issues begin in high school, not college. Should teens have credit cards?
Teens today are consumers, pumping billions of dollars into the economy, so there's something to be said about teaching them to use credit cards responsibly before they go off to college or out on their own.
Why Should Teens Use Credit?
Credit cards offer convenience, but their main purpose should be to establish a good credit history so your teen can, when the time comes
•qualify for car loans and mortgages
•be able to rent an apartment
•qualify for favorable interest rates on all types of loans
•obtain lower auto and homeowners insurance premiums
•qualify for a job (employers are increasingly using credit scores when evaluating job candidates)
The best way to learn is often by doing. Having a credit card in high school can be beneficial if
•the teen is responsible
•the teen is given a credit card with a low credit limit
•parents monitor the teen's spending and payments monthly
•parents discuss the choices made, the implications of those choices, the obvious and hidden costs with the teen
•parents make suggestions for positive changes
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